>> STEP 2. Use the million dollars and buy one
million dollars worth of well-selected real estate.
>> STEP 3. Get other people to agree to pay off
the million dollar loan for you.
Sounds easy. Right? Well it is. Think about
this.
In the next
year, I want you to go into your real estate marketplace and
see if you can find two single-family houses, townhouses or
condos in a starter price range. The price range will vary
depending on the area of the county that you are in. For my
example, I'm going to use a range of $150,000 to $200,000 per
property.
I want you to
buy these two properties and you should be able to borrow most
of the money needed (in some cases all the money needed) from banks,
mortgage companies, sellers and other investors.
I want you to
repeat the same process for a minimum of five years. At the end
of the five year period you would know own ten properties worth
one million or more dollars and you will owe one million or more
dollars on those properties.
Now the
only thing left is to find people willing to pay off your
loans on those properties. Those people are all over the place and
they are called RENTERS!
At the end of ten to twenty years, what will
you have?
You Will Have
More Than A Million
Dollars Worth Of Real Estate That Somebody Else Bought You!
Why more than a million? Because of
inflation and other factors in out economy will increase the
value!
And not only will you have a million dollars
worth of real estate you will have an income of $100,000 +
from renting them out because they are all paid for.. and your
income will increase as your rents increase.
If you’re saying to yourself that a million
dollars isn’t enough and 100, 000 + of annual income isn’t
enough, the solution is simple…. BUY MORE!
Learn how to get the
money
The first step to get started is that you
should learn the rules of the lenders and their programs that
they have available for rental properties. To do this you
should spend a few hours or more on the phone calling
different lenders and asking them these questions:
-
What type of loan programs do they have available for
rental properties?
-
What are the down payment requirements?
-
What is the least amount of down payment required?
-
What does the person have to do to qualify?
-
Do they have any creative financing options to help you
buy?
-
Do they have a maximum amount of loans that they will do
with one investor?
-
If their program doesn’t fit what your trying to do,
do they know of any other lenders who have loan money on
rental properties.
-
What are their fees, interest rates, loan terms, closing
costs and any other costs of the loan?
Once you talk to several lenders you will
develop other questions that you should ask and will get a
good feel of what you need to do to get qualified to borrow
the money. Don’t get frustrated! Many lenders will tell you
that you can’t do it or you won’t qualify. Just keep
calling more lenders and remember that lender are in the
business to lend you money. If they don’t lend money they
are out of business.
The other source and I believe the best source
is Seller’s financing (In the form of a Contact for Deed,
Installment Contract, Seller’s Mortgage). Why is this the
best? Because you don’t have all the costs of a traditional
lender. There are generally no loan origination fees,
appraisal fees, etc. and the best part of seller financing is
that everything is negotiable between you and the seller.
How do you get seller financing?… You ask
the seller if they are open to it?… You ask the seller if
they would like to earn more on their money than if they put
it in the bank?
Learn to find the
properties
Now that we have an idea about financing we
have to start looking for the right properties and analyze the
numbers. You want to start by trying to find smaller starter
home that a young family or couple would like to live in. Here
are some ideas where to look and how to find properties.
1. News paper
ads
2. Real Estate MLS System
3. Driving through neighborhoods
4. Advertise
5. Tell people that you are looking...Get the word out.
This is a short list, but you only need to
find a couple of properties a year to make this plan work and
this short list will do the job. If you want to find more than
a few properties a year you should expand your marketing
efforts.
Important: You need to look at quite a few
properties before you buy one and you must run the numbers to
make sure the property will rent for the proper amount to pay
off all your loans and other expenses. You might have to look
at 10, 25, 50 or even 100 properties before you find that one
that you should buy. Once you look at a lot of properties it
gets easier because you start to know what to look for and
will be able to weed out a lot of properties over the phone.
Ok, You have now found a property. You have
ran the numbers. (Use an Investment Property Worksheet or
Real Estate Analyzer Software) and it all make sense. Now is the time to make an offer to
buy.
Once the offer is accepted you now want to
start the third step… Find a renter who will rent out the
property.
Learn to get good renters
Get permission from the seller to allow you to
show the property to prospective renters before the day of
closing. You should start by advertising in you local paper
and contact real estate offices to let them know you have a
property available for rent.
Select the best renter based on the criteria
that you set up and learn to manage the property.
Repeat the process to buy more and more houses
until you reach your goal.
The fastest way to learn is by doing it. This
report is short and to the point and doesn’t have every
single detail in it. The details you will learn as you go…The
key to this is to GO and get started.
Dave Schneider has
been investing in real estate for over 25 years and is devoting
to helping landlords make more money!. For free audio seminars,
tools and information on real estate investing and being a
landlord, visit this site now: http://landlordtools.com
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